All posts tagged Fidelity

Brett Hacker, a photographer in Kansas City, Mo., looks over his 401(k) statements.

As we reported today, the U.S. Department of Labor expects to issue final rules soon that require 401(k) plan administrators to detail the costs they are charging to employers offering them. The plan sponsors will have to disclose costs to workers stashing their retirement savings in the plans as well.

The record keepers for some plans are already experimenting with new ways to explain fees to retirement savers. And in at least one case, those disclosures are raising more questions than employers or investment advisers want to answer.

Lincoln Trust of Denver, a 401(k) record keeper that has no proprietary investment products, has developed what it calls a “personalized expense ratio,” designed to help participants see the actual cost of the fees they’re being charged without having to do the math for themselves, says Tom Gonnella, Lincoln’s senior vice president of corporate development. Read More »

After Legg Mason chief investment officer Bill Miller last week said he would step down in April, a number of commentators noted that he might be wishing he had stepped down a few years ago, when his fund was still on top.

Some other famous stock pickers, such as Peter Lynch and John Neff, managed to get out with their legacies still in tact.

But while Lynch’s legacy was saved, that of his former fund is suffering. The Fidelity Magellan mutual fund has lost more than 4% annualized over the last five years, according to Morningstar, more than 3 percentage points worse than the S&P 500. Underperformance since Lynch left led to a revolving door of managers. Jeffrey Feingold most recently took over in September. Read More »